TAIPEI - Bank of China officially opened its Taipei branch Wednesday, making it the first Chinese mainland bank to start commercial operations in Taiwan.

A grand opening ceremony was held in downtown Taipei and attended by Wu Poh-hisung, honorary chairman of the Chinese Kuomintang, Chiang Pin-kun, chairman of Straits Exchange Foundation, and Li Lihui, president of Bank of China, as well as senior executives from the island's major financial holding companies and other distinguished guests.

"The Taipei branch opening marks a major step in Bank of China's development as well as a milestone in deepening economic and financial cooperation between the mainland and Taiwan," said Li, while addressing the event.

He said Bank of China will follow the banking rules of both the mainland and Taiwan and contribute more to cross-Strait economic and financial cooperation through its corporate banking, personal banking and other services.

Services currently available at the branch are mainly those associated with corporate finance.

As the first mainland bank to establish cooperative relations with Taiwan banks and offer services to Taiwan business people, Bank of China has entered into business cooperation agreements with 10 Taiwanese banks and established corresponding banking relationships with 29 Taiwan banks, according to Li.

Li said the total credit that Bank of China has offered to Taiwan-funded companies over the past three years is worth more than 160 billion yuan ($25 billion), and the bank plans to arrange 200 billion yuan more in credit to support the development of Taiwan-funded companies over the next three years.